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You expect the following interest rates and cash flows: Year Spot rate Cash flow 0 1 2 n/a 1.9% -1,000 400 3 2.8% 3.6%

 

You expect the following interest rates and cash flows: Year Spot rate Cash flow 0 1 2 n/a 1.9% -1,000 400 3 2.8% 3.6% 500 300 What is the present value of the cash flows?

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